Ithala Bank set to repay customers before end of year

The KwaZulu-Natal government has assured Ithala bank depositors that they will finally receive their money back.

The provincial government says depositors will have access to their funds before the end of this month.

The commitment has been made by Premier Thamsanqa Ntuli following months of a crisis at the bank.

In January this year, the prudential authority applied for the bank’s liquidation, arguing Ithala is technically insolvent.

For almost a year now, depositors could not access their funds from Ithala Bank - leaving small businesses, investors, and community stokvels stranded.

The crisis came after the Reserve Bank suggested that the bank cannot run itself.

READ: Future of Ithala Bank hangs in the balance amid legal battles

This was something which the provincial executive council strongly opposed.

Premier Thamsanqa Ntuli said they have reached a breakthrough, at least for the depositors.

“Ladies and gentlemen of the media, I am pleased to announce that we have reached a historic breakthrough. We have successfully concluded all agreements required to begin the repayment of Ithala Soc Limited depositors.”

He says formal processes for the repayment will start soon.

“In the coming days, the provincial government, working together with Ithala, the national treasury, and the appointed payment administrator, will issue detailed instructions outlining.”

The executive says it remains committed to saving Ithala.